Livery drivers, who have often been denied workmen's compensation, will now have better access to the program under a new law signed by Gov. Paterson.

The measure covers livery drivers in the five boroughs, and Westchester and Nassau Counties.

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Until now, injured livery drivers could go years without compensation as their cases bounced between the no-fault insurance and workers' compensation systems, Paterson said Friday.

The new law establishes rules to define which drivers are employees and which are independent contractors. It also will create a fund, beginning Jan. 1, 2009, that establishes full workers' compensation coverage for independent-contractor drivers who suffer serious injuries on the job.

"The livery cab industry is a key element of New York City's public transportation network, as well as a job-producing machine for tens of thousands of New Yorkers," said Paterson.

He added that the new law "will reform a system that has been bogged down by bureaucracy for too long."

"These livery cab drivers - most of whom are immigrants who, in the tradition of so many others, work nonstop to give their families a shot at the American Dream - deserve some sense of security as they ride the streets night and day," said Rangel.